US government backs $1.6B USA Rare Earth package to build Texas mine and US magnet plant

What happened

USA Rare Earth ($USAR) says the Trump administration will back a $1.6B debt-and-equity package to help build a Texas rare earth mine plus a US magnet facility aimed at defense and high-tech supply chains. The Commerce Department is set to take a 10% stake, part of a broader push to cut reliance on China.

Why the market cares

Rare earths and permanent magnets are a strategic choke point for fighter jets, missiles, EV motors, wind turbines, and consumer electronics. Government capital can de-risk projects, pull forward timelines, and re-rate “domestic supply chain” names.

Winners

US rare earth production and processing

Direct beneficiary of US funding and reshoring; improved confidence ...